Calculate lender's title insurance premium based on mortgage loan amount, property type, and whether purchased with an owner's policy.
Lender's title insurance is required by virtually all mortgage lenders to protect their financial interest in your property. The policy covers the lender — not you — against title defects like liens, forgery, and recording errors up to the outstanding loan balance.
This calculator estimates lender's title insurance premiums based on your loan amount and whether you're purchasing it simultaneously with an owner's policy (which provides a significant discount). Lender's title insurance is a one-time closing cost, not a recurring premium.
This is an educational estimate only. Rates vary by state and title company. Some states have regulated rates; others allow open-market pricing. Get quotes from your title company for exact costs. Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process.
Lender's title insurance is a mandatory closing cost for practically all mortgages. Understanding the cost helps you budget accurately for closing and make informed decisions about purchasing the owner's policy simultaneously to take advantage of discounts. Having a precise figure at your fingertips empowers better planning and more confident decisions.
Standalone Premium = Loan Amount × $2.50 per $1,000 Simultaneous Issue (with owner's policy): 40% discount Simultaneous Premium = Loan Amount × $2.50 / 1,000 × 0.60 Minimum Premium = $200
Result: $480 (simultaneous issue)
Standalone: $320,000 / $1,000 × $2.50 = $800. Simultaneous issue (40% discount): $800 × 0.60 = $480. Savings of $320 by purchasing with owner's policy.
Lender's title insurance covers the outstanding loan balance against title defects that existed before the mortgage was originated. This includes undisclosed liens, forgery in the chain of title, recording errors, and undisclosed easements that affect property value.
Lender's title insurance is listed on your Loan Estimate and Closing Disclosure as a one-time closing cost. Combined with the owner's policy, title insurance typically represents $1,000-$4,000 of closing costs depending on the property value and state.
When refinancing, you'll pay for a new lender's title insurance policy. Ask about reissue rates, which offer discounts when the prior policy is recent. Some title companies offer refinance rates that are 40-60% lower than standard rates.
Yes. Virtually all mortgage lenders require lender's title insurance as a condition of the loan. It protects the lender's security interest in the property against title defects. It's typically paid by the buyer at closing.
Lender's title insurance lasts for the life of the mortgage — until the loan is paid off, refinanced, or the property is sold. If you refinance, you'll need a new lender's policy.
When you purchase both owner's and lender's title insurance from the same company at the same time (at closing), the lender's policy is typically discounted 25-40%. This is because most of the title search work has already been done.
No. Lender's title insurance only protects the mortgage lender's financial interest. To protect your equity and ownership rights, you need a separate owner's title insurance policy.
Yes. Refinancing creates a new mortgage, which requires a new lender's title insurance policy. However, you may qualify for a reissue or refinance discount if the prior policy was issued within the last few years.
Typically the buyer selects the title company, though in some states and areas it's customary for the seller to choose. Under RESPA, the seller cannot require the buyer to use a specific title company.